DI Wire: Cox Capital Partners Provides Direct Secondary Liquidity for Nontraded Alts
Cox Capital Partners, an SEC-registered investment firm based in Philadelphia, PA, is an institutional liquidity solution for illiquid alternative investment funds. The firm launched in 2020 as a direct response to the growing liquidity needs created by the continued growth of retail-focused nontraded fund structures.
Retail alternatives have continued to grow at an accelerating pace, and advisors and their clients continue to face headwinds with respect to managing liquidity needs amid uncertain market conditions and fund-sponsored redemption program concerns.
The secondary market within the institutional space has grown considerably to accommodate investor needs as allocations to alternatives have grown and strategies have shifted over time. As more investors in the retail market increase their allocation to alternatives, there is an increasing demand for broader liquidity options in this segment of the market.
John Cox, CEO and Founder of Cox Capital, explains that “the growth of secondaries in this downstream channel of the market is inevitable. Much like Coller Capital, Lexington Partners, Blackstone Strategic Partners and other firms who serve institutional liquidity needs, Cox Capital represents a direct option for investors in the growing retail alternatives market.”
The Cox Capital business has been built on developing relationships with advisors, advisor firms, and fund sponsors to augment the portfolio management tools available to drive shareholder value.
“We believe the growth of the secondary market will help to mature and create efficiencies where certain fund-related limitations persist. Retail investors should have access to additional liquidity options in a similar construct compared to institutional investors. Facilitators like Central Trade & Transfer, LODAS Markets, and others are helping to educate and raise awareness regarding the need and availability of secondary liquidity, and we’re excited to play a crucial role in the growth of this ecosystem,” notes Sean Stephan, a partner at Cox Capital.
Historically, as compared to third party tender offer firms, Cox Capital has provided an average purchase price per share that is 20-40% higher which represents a direct value-add to existing shareholders seeking liquidity. Cox Capital also does not charge any commissions or fees as part of liquidity solution to shareholders. The firm leverages a comprehensive proprietary database of investment product and public and private market data to better underwrite and provide fair values to sellers seeking liquidity.
Cox Capital has provided direct liquidity to over 1,000 advisors and their clients and transacted in over 40 nontraded alternative investment funds, including non-traded business development companies (BDCs), non-traded real estate investment trusts (REITs), closed-end funds, interval funds, feeder funds, and other private funds. Cox Capital enables quick transaction processing with simple, technology-enabled solutions and operational expertise that requires no changes to advisors’ or firms’ existing business operations.
The team at Cox Capital has deep experience and relationships and understands both the complexity of the products and value of the advisor-client relationship. The firm also recognizes the need to be adaptable to the distinct needs of different fund sponsors, firms, advisors, and investors and strives to be a trusted partner. This unique combination positions Cox Capital as the premier liquidity option for retail-focused alternatives.
To learn more about Cox Capital and its liquidity solutions, please email email@example.com.